Crude Oil Tests Bullish Trendline – Quick Trade Setup - Forex News by FX Leaders

Crude Oil Tests Bullish Trendline – Quick Trade Setup

Posted Thursday, October 11, 2018 by
Arslan Butt • 1 min read

Recalling our earlier update, WTI Crude Oil Take a Dip – Bearish Butterfly Does Well, crude oil prices plunged to $71.78 level from the high of $76.88 within a week. All this came in response to the bearish butterfly pattern on the daily chart which was attracting sellers.

The pattern completed the C to D wave near $77.10. It violated the immediate support level of $72.75 on Wednesday to continue to bearish momentum. But the oil is testing a bullish trendline support near $71.78.

As you can see on the chart, the WTI crude oil has also closed a doji candle right above the major support level of $71.78, suggesting neutral sentiment of investors. I can be a good time to capture the retracement and that’s exactly what I’m trying to do now.

Support Resistance
71.57 74.25
70.59 75.95
67.91 78.63
Key Trading Level: 73.27

Our forex trading signal is to buy crude oil above $72 with a stop below $71.75 and a take profit at $73. Let’s see how it goes and we may probably close it before the release of EIA inventories report during the New York session.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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